Abstract
Euromonitor International' s Domestic Electrical Appliances in Vietnam market
report offers a comprehensive guide to the size and shape of the market at a
national level. It provides the latest retail sales data, allowing you to
identify the sectors driving growth. It identifies the leading companies, the
leading brands and offers strategic analysis of key factors influencing the
market - be they new product developments, packaging innovations,
economic/lifestyle influences, distribution or pricing issues. Forecasts
illustrate how the market is set to change.
Why buy this report
- Get insight into trends in market performance
- Pinpoint growth sectors and identify factors driving change
- Identify market and brand leaders and understand the competitive
environment
Product coverage
Large kitchen appliances; Small electrical appliances
Executive summary
Growth rates slump due to economic downturn
In the latter half of 2008 until 2009, the Vietnam' s economy plunged into a
downturn due to the global economic crisis. According to established business
press, Moneyweek, Vietnam witnessed slowest GDP growth rate for a decade in
2008 - 6.8%. There were massive layoffs and consumer confidence has dropped.
The economy is expected to perform even worse in 2009. Demand for domestic
electrical appliances is still growing but growth rates of most DEA segments
in 2008 were lower than in previous years. Sales only picked up prior to Lunar
New Year, a traditional buying and sale season.
Foreign companies expand their business in Vietnam
In manufacturing, foreigners such as Toshiba and Sanyo established new
factories in Vietnam during 2008. In retailing, many major foreign retailers
have either entered Vietnam market or expressed their interest. Japanese
retail giant, Best Denki, has joined forces with a domestic retailer to open
three new electrical appliances outlets in 2008. Korea' s GS Retail and US' s
Best Buy are seeking to enter the market. In the forecast period, foreign
investors are expected to co-operate with domestic retailers to start building
up their network in Vietnam.
Many new launches in 2008
Despite a fall in demand for domestic electrical appliances, home appliances
leading manufacturers have launched many new advanced products in 2008.
Philips and Panasonic, the two leading brands in small home appliances,
launched new steam irons with automatic functions. Samsung introduced three
new air treatment product lines Vivace, Forte and Neo Forte. LG Electronics
Vietnam also launched their new product lines of air conditioners named Jet
Cool, Neo Plasma and Art Cool. In November 2008, Panasonic launched its new
air conditioners named Envio I2 and P2. Established manufacturers believe that
the number of middle and high-income consumers is increasing and they are
competing by launching new products that target these consumers.
Energy-saving products are the new trend
Consumer awareness about saving energy has greatly increased partly due to the
country' s current power shortage problem and also due to the government' s
effort to encourage people to save electricity. As a result, most consumers
have started to seek for energy saving products. Aware of this new trend,
manufacturers have also launched new products with energy-saving features.
LG' s Ecosave washing machines and Inverter air conditioners and Panasonic' s
Envio air conditioners are typical examples of new power saving products in
2008.
Panasonic remains top player
Panasonic is the famous brand of the home appliances produced by Matsushita
Home Appliances Co Ltd, a subsidiary of Japan' s Panasonic Corp. The company
has maintained its number one position in Vietnam' s domestic electrical
appliances since 2001 although it has slightly lost share. In 2008,
Matsushita' s value-share was 15%, down from 16% in 2001. Matsushita is the
leader in small electrical appliances and is among the top five in large
appliances such as refrigerators and washing machines.
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